How would you like to be your own boss? When persons think about being self employed they have visions of sleeping until noon and taking long vacations while earning lots of money with very little effort.

This illusion is usually shattered when persons attempt to strike out on their own.

Can being an entrepreneur be a good financial decision? How can you be a successful entrepreneur?

Obstacles

First let’s examine some challenges that entrepreneurs face in Jamaica. The biggest hurdle might seem to be financial but the root of the issue is proper planning.

Often people have an idea of a product or service and decide that it will make the perfect small business and jump right to getting the start up capital.

The lack of planning and research can negatively affect the business. For example if the product or service is one in which is offered by other entities then it might difficult for your business to carve out its own niche.

It is also good to consider that new companies have to put more effort in getting customers since they would not have the same customer base as the older companies. New entrepreneurs who don’t check out the competition end up making the mistake of being in a market that is overly saturated and lose their profit.

Of course sourcing financing can also be a headache. Banks are notorious for charging high interest loans which can cause strain on a new company.

There are other problems such as managing your finances without a steady paycheque and ensuring all the relevant taxes are paid.

Success

The advantages of being your own boss beckons people despite the risks. In order to be successful it is important to realize that being your own boss means that you have to work twice as hard.

A well crafted business plan that outlines how the business will sustain its profits will help you to confidently make sound financial decisions. A good business plan and budget will also impress future investors n your company.

There are other ways to get the funds for your new company such as using your own savings or seeing if you qualify for any government grants. If all else fails you could consider securing a silent investor in exchange for some stake in your company.

If there are other successful small business leaders in your community, spend some time examining how they approached the market and any gaps they may have in their products or services. It is these gaps that can be capitalized by your new company.

Since small businesses depend heavily on good customer reviews, it’s important for entrepreneurs to use social media as a medium to advertise so they can attract new clients. It is vital that those new clients receive great service so that they will become repeat customers.

Although it takes a lot of hard work, entrepreneurs can be successful!

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